NCDOT: Federal Competitive Grants - Frequently Asked Questions

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What is a competitive grant?
A competitive grant is a federal award given to recipients based on merit and eligibility. Each agency at the U.S. Department of Transportation announces funding opportunities via a Notice of Funding Opportunity (NOFO) and selects projects according to specific federal program requirements. Applications undergo competitive review by the federal agency before a final funding decision is made.
What is a Notice of Funding Opportunity (NOFO)?
Each federal grant program issues a Notice of Funding Opportunity (NOFO), which is a formal invitation for grant applications. It specifies program-specific requirements, including eligibility, cost-sharing or matching funds, and the total grant amount available.
What is a UEI and EIN number?
Non-federal entities need both a UEI (Unique Entity Identifier) and EIN (Employer Identification Number) to apply for federal awards. The UEI, previously known as DUNS, is a twelve-digit alphanumeric assigned on SAM.gov for federal grants and fund tracking. The EIN is a nine-digit federal tax ID issued by the IRS for tax identification. UEIs and EINs are valid for a lifetime, but UEIs require an annual registration renewal.
What is the difference between cost sharing and federal share?
Cost-sharing, or matching funds, refers to the portion of a project's cost not covered by federal funds and is usually represented as a percentage. The federal share is the part of the project costs that federal funds cover.
What sources of funds are eligible to be used as a local match?
Competitive grants allow for many sources of funds to be used as a match (cost share) for these projects. Eligible sources of non-federal funds include:
- State funds originating from programs funded by state revenue
- Local funds originating from state or local revenue-funded programs
- Private funds
- Tribal transportation program funds under section 202 of title 23
- Federal lands transportation program funds under section 203 of title 23
- TIFIA program funds (as defined in section 601(a) of title 23)
- Railroad Rehabilitation and Improvement Financing Program under chapter 224
- Federal credit assistance (if repaid from non-federal sources)
Unless otherwise authorized by statute, funds used to satisfy the cost-share requirements of a different federal program may not be counted as a cost-share to the grant funds as well as towards another federal grant program.

Non-federal funds are subject to the same federal requirements as competitive grant funds.
What is gap funding, and what should I do if I experience this after being awarded a grant? What if the funding exceeds what I requested?
Sometimes, the federal government agency may not award the full amount of funds requested in a competitive grant application. If this happens, the recipient of the grant award must determine:
1. If the full scope of the project can be delivered with the reduced amount of federal funds;
2. If the project should be scaled back to match the available funding; or
3. If additional funds can be identified to cover the funding gap.
In the case where the scope must be reduced, the federal agency may not fund the project.

For each project that receives a competitive grant award, the terms of the award will require the recipient to complete the project using at least the level of non-federal funding that was specified in the application.

If the actual costs of the project are greater than the costs estimated in the application, the recipient will be responsible for addressing the funding shortfall and maintaining the level of non-federal funding stated in the application. If the actual costs of the project are less than the costs estimated in the application, the federal agency will generally reduce the federal contribution to ensure federal cost share requirements are met.
What does it mean to obligate funds?
Obligation occurs after a federal agency has awarded a project and completed a grant award agreement. It is a legal commitment from the federal government to reimburse a state for the federal share of a project’s cost during a given period.
Where should I submit my grant application?
Most federal grant applications are submitted through Grants.gov by the deadline set forth in the NOFO. After selecting a grant program to apply for, the applicant can create a workspace to upload all required forms and information. For more information on how to create a workspace, visit the Workspace Overview webpage. Once completed, the applicant can submit the grant application and track its status. In some cases, the tool ValidEval is used instead of Grants.gov to submit grant applications.
What is the typical timeline for preparing a grant application?
The timeline for preparing a grant application can vary depending on several factors. Some key factors that can impact the timeline include the opening date, submission deadline, the availability of the grants team, conducting a cost-benefit analysis, developing the project narrative, and the project's schedule.
What happens once my project is awarded funding?
If a project is awarded funding, the recipient will receive an email from the grant program confirming the award. Following this notification, the recipient will work with the federal agency to negotiate and sign a grant agreement. A grant agreement is a contract between a federal awarding agency and a non-federal entity that outlines the terms and conditions, as well as obligates the uses of grant funds.

It is significant for the grantee (the person or organization receiving the funds) to follow the rules set in the award and to inform NCDOT of the awarded funding.

No project work should begin until the grant agreement is fully executed and received written notice to proceed. The federal government will not reimburse for any work prior to the agreement being signed. Once the project starts, USDOT will closely monitor the progress of the project and ensure that it follows the agreement.
What happens if my project is not awarded funding?
If a project is not awarded funding, the grant program will inform applicants by email. Depending on the specific grant program, the project may either be automatically considered for the next funding round or require the applicant to resubmit the grant application for future cycles.
Applicants have the option to request a debrief with the federal awarding agency to receive an explanation of the rating and better understand why the application was not selected. After this meeting, there may be a limited time to submit additional information to strengthen the application. Additionally, USDOT may recommend exploring other grant programs that could be a better fit for the project.
How do locally administered projects differ from NCDOT-administered projects?
NCDOT delivers a wide range of transportation projects in North Carolina, including highways, rail, bicycles/pedestrian paths, ferries, and transit systems. The Department is responsible for all aspects of design, construction, operations, maintenance, and funding.

In North Carolina, local government agencies (LGA) can also deliver transportation projects, carrying out the design and construction of projects, or implementation of programs. These LGA projects and programs may receive federal and/or state money guided by recommendations of the Metropolitan or Rural Planning Organizations (MPOs and RPOs) and NCDOT Program Areas.

For most transportation projects, NCDOT and the local government enter an agreement outlining the project scope, requirements, and funding. Locally administered projects (LAP) are treated as reimbursable, meaning the LGA first expends the funds and later invoices NCDOT for reimbursement after the project is reviewed.

For LGA projects that received federal competitive grant funds, the local government must choose whether to be a direct recipient or a sub-recipient:
- Direct recipient: The local government works directly with the federal agency overseeing the grant program, and NCDOT has no direct involvement in the delivery of the program. This means that the local government invoices the federal agency directly and the funds are reimbursed to the LGA.
- Sub-recipient: NCDOT’s role is to advise, approve, and oversee the proper expenditure of funds by an LGA on an eligible project or program. In this case, NCDOT is the recipient, and the local government is considered to be the sub-recipient. For reimbursement, the LGA expends the funds and invoices NCDOT for reimbursement. NCDOT also sends an invoice to the federal government for reimbursement. At the end of the project, if any part of the locally administered project is found to be ineligible, NCDOT will then invoice the LGA for those costs.
Additional information can be found on NCDOT's Local Project Administrations website.
Does NCDOT provide recommendations for consulting firms to prepare federal grant applications?
NCDOT does not provide recommendations for consulting firms to assist local governments in preparing federal grant applications. The local government is fully responsible for selecting a consultant to help them prepare their grant applications while following their procurement rules. Though NCDOT is willing to participate in meetings to assist with grant application development and provide valuable insights, the local government must identify a qualified consultant.
How do I get my project in the STIP?
NCDOT updates the State Transportation Improvement Program (STIP) every two years to ensure it reflects the state’s current financial situation. However, STIP projects are amended regularly throughout the year to address changes and to stay current. This process can take at least two months based on state law. Also, any amendments made to the STIP must be presented to the Board of Transportation for information and approval. It is important to plan for this timeline when considering changes to the STIP.

To have a project included in the STIP, it is recommended to contact both the Division of Planning and Programming at NCDOT and the local planning organization, such as a Metropolitan Planning Organization (MPO) or Rural Planning Organization (RPO), to ensure the necessary steps are taken to add the project to the appropriate federal documents.

10/27/2025 10:07 AM